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Regarding Duty Drawback Rates for Non-Alloy Steel and Alloy Steel
Forgings
Customs
Circular No. 2 dated 3rd January 2003
Attention
is invited to the SS Nos. 73.29 and 73.30 of the Drawback Schedule, 2002-2003,
whereby duty drawback rates have been provided for non-alloy/ carbon steel
forgings, etc. and alloy steel forgings, etc., respectively. However, these
entries have composite rates of drawback i.e., having both Customs and
Central Excise components. The admissibility of drawback under these entries is
further subject to the condition of �non-availment of Cenvat facility�.
2.
The Engineering Export Promotion Council has represented that for those
cases where the Cenvat facility has been availed, the drawback equivalent to the
Customs component may be provided as has been made available to other products.
3.
The issue has been examined. Since the basic objective of stipulating the
condition of �non-availment of Cenvat facility� has been to prevent accrual
of double benefits on account of Central Excise component only, no revenue loss
shall entail if at least the Customs component is permitted to those exporters
who avail of Cenvat facility.
4.
It is, therefore, clarified that in all those cases relating to SS No.
73.29 and 73.30 of the Drawback Schedule, where the exporters avail of the
Cenvat facility, the relevant Customs component of the notified drawback rate
may be allowed as drawback.
5.
All pending cases of the parties may be decided accordingly.
6.
Suitable public notices for information of the trade and standing orders
for guidance of the staff may kindly be issued on the above lines.
7.
The receipt of this Circular may kindly be acknowledged.
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